By Kamadi Amata
Kiharu Member of Parliament Ndindi Nyoro has raised concerns over Kenya’s escalating debt, warning that the nation is on the verge of defaulting as its debt burden reaches Ksh.11 trillion. Speaking at the Institute of Public Finance’s annual budget review, Nyoro highlighted the rapid increase in public debt over the past twelve years—from under Ksh.2 trillion to the current Ksh.11 trillion.
Data from the Central Bank of Kenya indicates that as of December 2024, the country owed Ksh.10.9 trillion, with 54% attributed to domestic lenders and 46% to external sources. During President William Ruto’s tenure, public debt has surged by over Ksh.2 trillion, rising from Ksh.8.7 trillion.
Nyoro expressed concern over the government’s plans to renegotiate existing debts, cautioning that such moves could further destabilize the economy. He emphasized that any indication of Kenya’s inability to service its loans could have catastrophic consequences.
The upcoming 2025/2026 budget estimates project a total expenditure of Ksh.4.2 trillion, with approximately Ksh.1 trillion earmarked for debt interest payments. Nyoro noted that Ksh.750 billion is expected to service domestic debt, while Ksh.200 billion will address external debt obligations.
Additionally, Nyoro criticized the government’s approach to increasing taxes since 2022, arguing that higher taxes have negatively impacted economic decisions and overall revenue collection.
As Kenya navigates these financial challenges, Nyoro’s warnings underscore the urgency for prudent fiscal management and transparent debt handling to safeguard the nation’s economic stability.